- Strong FY 2021/22 results led by net profit after tax of $16.7 million, an increase of 19.6% from the previous year.
- Lending remains resilient – new home loan lending at $617.9 million and personal loan lending at $78.3 million.
- Strong fundamentals including capital at 15.74%, total liquidity at 15.24%
- Loan delinquency rate remains low, at just 0.08% for home loans.
- Return on assets is 0.54%, with return on equity at 7.91%.
- Continued investment in member-focused products and services to make banking easier.
Defence Bank has recorded a strong result for FY 2021/22, recording a $16.7 million net profit after tax while maintaining a disciplined focus on remaining relevant to members.
Commenting on the results, Defence Bank Chief Executive David Marshall said:
“These results reflect our commitment to continuous improvement supported by patient and incremental investment in both our people and digital capacity. We continue to work hard every day for our members and with our key IT and payment partners.
“We are acutely aware of the privileged position we have in supporting the Australian Defence Force (ADF) community. We take nothing for granted and remain open-minded about future opportunities including further enhancements to products and services tailored to the Defence community.
“Our members are at the centre of what we do and we remain optimistic and tightly focused on our unique field of membership and what’s important to them.
“These results are part of our people-led strategy combined with long-term investment in our digital capability.
“Defence Bank’s net profit was a 19.6% increase from the previous year, new home lending for the year was $617.9 million, with deposit growth of 8.3%. Total deposits are now $2.52 billion.
“All of our fundamentals are strong and sustainable for the long term – our loan delinquency rate remains low, at just 0.08% for home loans. Capital sits at 15.74%, with total liquidity at 15.24% which is comfortably in the middle of our operating range.
“This is further backed by a rating of Baa1 | Stable | P-2 from Moody’s Investor Services and a rating of BBB |Positive| A2 by S&P Global Ratings, which were both also re-confirmed during the financial year.
“During 2021/22 Defence Bank reached $3.2 billion in assets, with a return on assets of 0.54%, with return on equity at 7.91%, Net Interest Margin (NIM) of 1.98% and a cost-to-income ratio of 66.4%.
“Despite the global and local economic challenges, Defence Bank is well placed to maintain its consistent, calm and focused trajectory.
“Our path ahead is member-focused and people-led, technology-enabled. We will continue to invest in our digital capability to make it easier for our members to bank with us.
“In recent times we have invested in transforming our loan approvals process and allowing members to have approval in a matter of minutes. We were also one of the first banks to adopt NPP and PayTo, offering choice for members to take charge of their payments for their convenience.
“Investments and relationships like these should go some way to dispel the myth about bigger banks always being better digitally.
“Members have reacted strongly to these and other improvements and are advocates for the Bank. Defence Bank recorded an average Net Promoter Score of +51, well ahead of the big four banks. “